Share story

PepsiCo, the world’s second-largest soft-drink maker, surpassed Coca-Cola in market value for the first time after beating its competitor in sales growth and diversifying beyond soda.

Shares of PepsiCo have risen 14 percent this year through Monday, pushing the company’s stock value to $98.4 billion. Coca-Cola shares have declined 1.2 percent, driving down the company’s worth to $97.9 billion.

Over the past five years, Pepsi’s sales growth has risen 7.8 percent, outstripping Coca-Cola’s increase of 2.4 percent.

PepsiCo’s sales have been lifted by demand for Gatorade sports drinks and Aquafina bottled water as well as reduced-calorie snacks including Baked Lay’s potato chips. The company derives more than half of its total sales from snacks and less than 20 percent from soft drinks.

In contrast, Coca-Cola gets 82 percent of revenue from soft drinks and hasn’t moved fast enough into bottled water and sports drinks as consumers shun carbonated beverages.

Coca-Cola Chief Executive Officer Neville Isdell said last week the company is making “good progress” after a slump in volume and an “innovation deficit” in the U.S.

Coca-Cola was slower than PepsiCo to move beyond sodas. The company started selling bottled water in 1999 when it introduced Dasani, four years after PepsiCo introduced Aquafina. In 2001, Coca-Cola’s board voted against a proposed acquisition of Quaker Oats, which included Gatorade.